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tv   Boom Bust  RT  October 13, 2017 11:29am-12:01pm EDT

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others are welcoming it open arms my guest former u.s. attorney commissioner bart chilton explains it all for us stand by the boss starts right now. according to british conservative m.p. daniel hand in the u.k. would be bringing something new to the table by joining the north american free trade agreement between the united states canada and mexico this comes during the lead up to the fourth round of nafta talks recently in canada prime ministers justin trudeau entries from a we're off to mystic about a bilateral trade deal on the heels of their talks in ottawa if given a choice head and says he'd like to jump into nafta as well as the european free trade association of non e.u. states and then perhaps bring in the european union of course serious exploration
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of trade with the european union will have to wait as divorce talks stall formal withdrawal of the u.k. from the e.u. is slated for march two thousand and nineteen. the federal reserve appears split on whether it will push up interest rates before the end of the year something many thought was a certainty persistently low inflation appeared to be a point of confusion according to the minutes of their september meeting of the federal open market committee many participants it says expressed concern that the low inflation readings this year might not reflect might reflect rather not only transitory factors but also the influence of developments that could prove more persistent a few of these participants thought that no further increases in the federal funds rate were called for in the near term it's their way of saying maybe maybe not but investors have settled around the notion that a december rate hike is all but guaranteed the signal for a hike showed predictable results on wall street the dow jones industrial average
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rose forty points and finished at a record of twenty two thousand eight hundred seventy two the s. and p. five hundred also posted a record close rising point two percent and the nasdaq composite gain point two five percent to finish at an all time closing high of six thousand six hundred three fifty five cents. and the u.s. economy has changed a lot since the two thousand and eight recession and its recovery while we've certainly seen some gains not everyone has recovered in the same way new analysis shows how certain cohorts have been left behind. the shooting has more on that for us in september the u.s. unemployment rate dropped to the lowest in sixteen years with the labor market seemingly strong you might think that consumer finances were healthy but they're not in fact the gap between the unemployment rate and consumer loan delinquencies is the largest it's ever been according to a new analysis by u.b.s. that's because both low income households and millennial have been left behind when
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it comes to wage growth as a result that's made it difficult to pay those loans on time whether we're talking about student loans auto loans and so on first take a look at loan defaults it's the millennial age twenty one to thirty four that have the highest level when the numbers are broken down by income it gets a little more complicated americans making between forty thousand to ninety nine thousand dollars a year have the highest level of defaults followed by those who make under forty thousand and based on the figures u.b.s. researchers are warning about the risks to the u.s. economy they wrote longer term the recovery and consumer finances suggests key segments of the u.s. population are more financially financially vulnerable and aggregate consumer credit metrics imply in turn these groups will be more sensitive to fluctuations in labor market conditions and interest rates catalyst paribas so if the fed raises interest rates again as it's largely expected to that means two things the shared
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struggle between low income households and millennial would get worse and the resulting risks to the u.s. economy would become greater. so what kind of loans are facing the most a link with right now we are looking at the most delinquencies in student loans and auto loans which probably doesn't come as too much of a surprise and recently there's been a lot of emphasis on the rise in auto loan delinquencies because of the natural disasters that we've seen in the past month with hurricanes harvey. and so on a lot of analysts expected a jump in the link would see it so it just goes to show how many circumstances sort of are involved here the good news is that delinquencies for mortgages and credit cards have actually been reined in a bit so it's not everywhere we're. yeah well for several reasons it will take a we can get you know there's been some improvements in other areas but this u.b.s. and now also it's really demonstrates two things which is the sort of divide in wealth in the united states between the rich and the poor and how lower income
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households are clearly suffering the most here when it comes to this but it also really shows the long and short term threats of stagnant wages on the u.s. right to me especially as it pertains to young people what would an interest rate increase mean for the student debt crisis because student debt is one of the biggest forms of that we have in this nation and it goes across the board well no matter what you're earning you're still paying pretty high interest rates as they stand already so the student debt. crisis is a little unique in terms of one currency is because when you get your degree and then you just whenever stop paying your loan repayments now when they come take away your degree or invalidate it somehow like they could with your car your house right very different there's sort of this gray area not that they can't garnish your wages because they can but there's even sort of a gray area with that. but we've seen tuition increase over the years and we've seen interest rates fluctuate but also increase but that still hasn't led to a lot of americans saying ok maybe we shouldn't send our kids to college or maybe
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we should send them somewhere more affordable the driver so many reasons that people choose more expensive school so it's kind of unclear what would push americans to really stop and say maybe we. rethink where we're sending our kids or should we really consider sending them somewhere that it's sixty thousand dollars a year to attend right so they're still willing to pay out the nose for the big name school because they can get access to the loans to pay for exactly thank you so much for the information on this boom bust. right now we are seeing an unwinding of the obama administration's overtures our friendship to cuba investigations into acoustic attacks on u.s. diplomatic staff working on the island cuban diplomatic staff sent away from the u.s. travel restrictions from the state department put in place and more to come it does not bode well for tourism and business in cuba but there may be a bright spot on the horizon please welcome vito at you're
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a journalist and writer for cuba standard dot com sir thank you so much for joining me let's talk about oil kubo oil union it produces at least four million tons a year hasn't found new reserves since two thousand and two a lot of people say it's still out there. on a energy company as to mates there could be up to eight billion barrels of potential oil reserves if this oil is found what does it mean for cuba. well you certainly would be a game changer if cuba does find significant amounts of oil offshore as you may have heard the u.s. geological survey back in the early two thousand as were the one that came out with this report asserting that there's a lot of oil to the north and particularly in north west coast of cuba which faces the gulf of mexico and south florida the only problem with all that is you've had oil companies who are done for ration efforts such as petro brass is still
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patrolling is from malaysia and also wraps off from spain these particular companies have done as well ration efforts and have failed so far the reason for this conference that was held recently and have and the reason why was held in the first place by the cuban state oil company cool bay is to lead to world that you know cuba still very much interested in finding that oil and is looking for whomever it needs to talk to in order to make that happen even american oil companies ok what about venezuela because for years venezuela sent supplies like oil to cuba big partners their big allies if more oil is found and discovered in cuba how does the shift of balance take place there's a balance of power going on there it's just going to completely skew that. right you know as you know when i hugo chavez was still alive and kicking you know he struck a deal with fidel castro a sweetheart deal to provide all to cuba somewhere in the area of at least one hundred thousand barrels
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a day to the island because island consumes at least one hundred thirty thousand barrels a day so during the so-called wonder years of relations between as well in cuba it was doing that but obviously because of the recent crisis political crisis in caracas venezuela currently supplies a fraction of that somewhere in the area of you know fifty to fifty five thousand barrels a day of oil so cuba has to make up for a shortcoming and so it's had to turn to its old friends such as russia to fill in the gap obviously cuba's aim is still to be energy independent which is why is still looking for a future oil drilling partners to make itself energy efficient a future you know once that does happen obviously it's going to be a huge change in relations between cuba venezuela cuba would no longer need venezuela for us and she needs right venezuela's head out for the us not happy at all ross nafta russian oil giant it's getting very cozy as you pointed out
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australia as we mentioned earlier what sort of a vacuum are we dealing with right now. well you know as a you know as i mentioned you know you're there is that i gather that the russians are for the time being filling the relationship cannot last forever because it's not the same you know terms of trade as with venice well i mean so you know obviously the goal for cuba is to you know find his own oil at some point so it does have the australian company known as melbourne they currently have a concession to drill on shore site which is somewhere just east of the resort town daryl but even if you know there's a significant find there. the belief is still that is there's even more significant potential find of oil off the north especially the northwest coast violent. i want to go back to something that you said last year with regard to donald trump
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president donald trump's tweets and his statements a rather explosive statement about cuba you had mentioned back then he was rather new to the presidency at the time and you said you know maybe don't take what he's saying too strong take it with a grain of salt what do you think now based on the changes you've seen in that time . a lot of individuals are perplexed as to why trump is taking the current position that you will chew which is your very hawkish is turning the clock back to a good thirty years you know many say that you know basically trump struck a deal with mark senator marco rubio and that congressman paul are to take that position as to pose to the american business community positions which a lot were proud to go that is there's a lot to be gained in the gauging doing business with cuba obviously there's the real issue is what disposition of the u.s. petroleum companies such as exxon mobil among others you know their position seems to be a wait and see game in which if a third country
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a third party or oil company does find a significant oil there that perhaps they were pressure tromping to take a more conciliatory more positive stance toward cuba so you might say you're pointing out we might see a backtracking on twitter then ok thank you so much for your great input on this video it's a very ad journalist and writer for cuba standard dot com. time now for a quick break stick around because when we return paris prepares to banish gas guzzling cars and it's time to talk about decline yet again it's hitting above fifty three hundred dollars now some governments are shouting it out and others want to bring it and we bring you some interesting perspectives on this and as we go to break here are the numbers at the closing bell.
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and he always gives yeah you always say are you going to. show you also the you know mr welch that it's going. to go in another place so i threw that in to permit the that and then. you have. to go it was. just to believe all. the glad i wish i'd got burned out on the number that i think you like to live on the cake but i. feel this way or got up out of the line down because you know i was going to call in the state of the impulse you know and he's not going to stumble into the room to shoot me in the least to use it for . me you know who he is. somewhere.
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places like africa and india will be some of the most exciting areas to to see that gray say the coming decades it's only forty fifty years ago that places like dubai in the middle east were themselves very impoverished communities but through energy they've become some of the richest places in the world and what i would hope to see now over the coming decades is that places which have been without power through cheap almost limitless solar power in particular would have the chance to share in those benefits. here's what people have been saying about rejected in the us actually it's full on. the village show i go out of my way to you know what it is that really packs a punch oh yeah it is the john oliver of r t america is doing the same we are apparently better than the blue. sea never heard of love jack tonight.
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president of the world bank so very. seriously he sent us an e-mail. paris is going green plans are underway to ban all gas and diesel fuel cars from the city of lights by two thousand and thirty this extends temporary bans already in place as paris combat surges and air pollution it is set to host the olympic summer games in two thousand and twenty four plans were already underway to try to clear out cars from the city before the games begin the government has issued a target date for a complete and to fossil fuel dependent cars nationwide by two thousand and forty. and big coin has hit a record above fifty three hundred dollars today it has some analysts baffled others are skeptical and many say it's the wave of the future so what's going on here here to fill us in is our teas marina partner in miami marina how did we get
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here. well lindsey it's been quite a roller coaster ride and currently the crypto currency is climbing high now to give you a better idea of bitcoins value right now is worth four times as much as an ounce of gold we should back up to the beginning of twenty seventeen to get a full picture of skyrocketing growth we marked the new year with the virtual currency resting at nine hundred sixty six dollars nearly a thousand now it remained on an upward trajectory until the end of the summer when it plunged below three thousand dollars in september now despite its good year bitcoins intensive volatility is what scares many investors away let's remember back in two thousand and thirteen enthusiasm we're lucky to see it topped one hundred now by the end of that year it was over one thousand after a drop in two thousand and fifteen we saw a bit coin catapulting interesting to know the one thing this currency strongly responds to is government crackdowns remember the dip below three thousand and
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september well that's when china began enforcing a crackdown on bitcoin subsequently that stop people from hosting the trading of the crypto currency there but as soon as bitcoin trading is approved somewhere else in the world up goes the value and that brings us to where we are today ok that's a rich history of how our analysts responding to all of this it's something of a mixed bag no one is denying that is causing a destruction analysts are just split on whether it's a force for good or evil for example harvard professor knew and khan a missed kenneth rogoff says it's a complete bubble he believes the block chain platform that quinn uses to operate will thrive but he also expects the crypto currency to inevitably collapse in those sentiments have been echoed by many other experts who believe as more governments attempt to crack down on the unregulated virtual currency its value will drop banks
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and other financial institutions have raised concerns about bitcoins as to see. with money laundering and online crime because transactions take place anonymously j.p. morgan chase chief executive jamie dimon has declared the cryptocurrency a fraud and at this point he refuses to even comment on bitcoin anymore however the reality lindsay as you know is that from new york to london more merchants around the world are accepting that coin and despite the warnings over a price bubble its value keeps soaring. it's amazing stuff right now that we're watching with these numbers going up and down arch of course want to thank you for that thank you. let's dig a little deeper into bitcoin and other digital currency is going to bring in the first very outspoken government official a financial regulator who many years ago raised concerns about how digital currencies would go forward joining me now former u.s. attorney commissioner bart chilton barr thank you so much for coming and talk about
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first off let's get something straight there have been. you have been out there very early talking about this and a lot of people are timing it now but there are often you know various concerns you support digital currencies and you've said that for a long time why i do and i but i think a lot of people think i'm such a naysayer in that i'm talking about how you have these consumer protections that they think i'm against the right acknowledge and i don't i mean it's like one of the you know coolest innovative projects that we've had with you know doing this transfer of money and you're talking about the value i mean the legend of bitcoin is that once a couple or a token was created the guy bought a couple of pizzas with it so certainly increased in value i think there's a lot to digital currency certainly the block chain on which the currencies are our base but again there's no there there alternately is no intrinsic value in it and that's why in a recent c. and b. c.
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i said you know had i been in my former job i would have called for an investigation choli think you see all these price wings i mean heck it's gone down an hour it's gone down one hundred dollars in the last hour you can see that i would have called and this evidence today shows me again that i would have called for an investigation into manipulation so i'm a supporter i think digital is going to thrive i think in you know fifteen years our kids and grandkids will think it was we carry paper money around right but for right now nobody's got it exactly right including bitcoin right it seems like governments are following the technology let's talk about the government they're clamping down on those that are welcoming at most recently we've got russian president vladimir putin made some big news on tuesday at a conference at a conference in moscow he denounced that point additional currencies he said virtual currencies are quote the currencies are becoming and have already become more popular as they have already become or are turning into a fully fledged payment instrument and investment asset in certain countries at the
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same time use of crypt our currency is also carry serious right. the head of the central bank they're also denouncing the cryptocurrency is a bit coin in particular it says it's going to block it it seems like the government power we're seeing around the world is kind of following suit is this the beginning of the demise or could we see things change well unless the coin in the digital currency enthusiasm do something i think it could be a partial slowdown i mean they have got to figure out what's going on and what's happening as we've talked about before not just in russia but it in china and south korea is the regulators are throwing up their hands and they're saying wait a minute we don't understand this enough we don't have the regulatory regimen the structure to deal with it appropriately and so what are we going to do we're going to stop it yeah and if the digital enthuse you said been out there saying this is how you do it this is our paper on how you do this appropriately it would be
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a better thing but they haven't done that so far so unless they take that action i think we'll see more actions like in russia south korea and china at that lesser going to come forward with the willingness to maybe consider being regulated which would go against you know pyrrhus another potential pattern we're watching also is the claim that it's just invalid j.p. morgan chase made this claim last month the chair the c.e.o. of j.p. morgan chase said it's not the real thing and eventually it will be closed president putin agrees saying that that coin is a pyramid scheme said we have seen how that coin is transformed a payment unit into an asset which is brought in order which is bought in order to obtain a high yield in a short period of time this is the definition of a pyramid you know pyramids you wrote the book about pyramid schemes pons imodium is between a fraud is a pyramid scheme could it be it's a ponzi scheme in the quintessential role is not the right definition. and
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there was no idea i think when this cool computer program was developed that they were going to start a fraud but by the same token there's not a thing that i've looked into as a regulator and a government official over the years financial product that wasn't based upon something and this is based upon nothing other then the market you say you'll pay me or i say i'll pay you for a bit there's no there there there's no physical certainty there it's not even like an equity where you're buying a little bit of a company and i do think a lot of these folks that bought bitcoins at the low price and some other digital currencies that they are betting on the future but not the long term future they need new investors similar to ponzi scams to get in in order to buy these things so the more people talk about how big coins are great investment i get concerned that
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average folks who i've always you don't care about the most as those people might get taken advantage of so you don't enter these things at your own peril is my advice ok so you say because it isn't definitional ponzi schemes but what is it that the digital currency and busiest need to be need to do to keep it going i mean firstly it's a regulation and what else is there to legitimize this and then push it forward again embrace regulation i'm not saying some thing that would be for innovation a truck it there'd be one need more transparency you're going disclosure i mean regulators china russia south korea they're concerned about a couple things one i like to think they're concerned about what i've always been concerned about about consumers but they're also concerned about taxes and so if they see that digital currencies are a way to avoid collecting taxes and revenues for their nation they're also going to stop it just why some of them like ecuador want to have their own digital currency and ban everything else so one they need to embrace regulation to
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a certain extent to they need to actually i think a coin needs. the based on something physical i don't know if it's oil or if it's what we or gold think it will ever be like that but i do matter fact i know that it's cold there i think that and the breaking news i know it's coming i know i speak with people all the time i'm going to talk about this in hong kong at a speech in a couple weeks it's happening and the third thing so regulation based upon something and the third thing is it needs to be fungible you need to be able to use it you can't just say hey you can go to eighty five different bed and breakfasts and california and use bitcoin and i want to use it it warmer i need it to be on a visa or discover and are that yes you need to be a practical currency that's fungible somebody at some point and it may be soon it may take years is going to get this right i don't think it's going to be bitcoin but somebody is going to get this right lindsay and it's going to be a game changer well we it's not just big client pickling gets the most you know play but it's like point if area and it goes you talk about what ecuador making
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their own form of bitcoin why not there's like fifty thousand we've talked about this some of them there's it's a joke is leading the way but do you think that there's a chance any other cryptocurrency is going to tag along right behind it very closely or think we're not going to go away i think bitcoin is going to take it until whatever bubble there is there burst and people are up and that's really going to put all digital currencies back on the back a ways and so my hope is that somebody does come out and there's just really innovative things i talk about what i think will happen but there's other innovative things happening out there about a bit coin exchanges where you can actually trade like ether in bitcoins or japan just recognize eleven companies to register exactly cryptocurrency there's a way to do this nobody's got it right but they're going to and it's a really exciting time keep at it we'll see if this bubble bursts fifty three hundred dollars today thank you so much for many of us try to work on our part. all
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right thanks for watching be sure to catch us on directv at any. united states you can find us on the r.t. channel three two one if you miss us on directv on youtube youtube dot com. thanks for watching see you next time.
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los angeles the city of luxury and fame but also an alarming number of people living in the streets. simple fact in l.a. he's there's just not enough shelter even if people on the streets right now decided to come in there's nowhere to come in it's been a struggle. this man phoned his own response of the problem and constructed dozens of tiny homes for people in need of shelter when you have nothing in order to go. you know having something like this may as well be a castle but do the authorities accept such. a tiny house on a parking space is not a solution. to someone wanted to ring the site otherwise it will be a free for all and is there
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a better alternative to end the homelessness crisis. about your sudden passing i've only just learned you worry yourself and taken your last wrong turn. to caught up to you as we all knew it would i tell you i'm sorry finally i could so i write these last words in hopes to put to rest these things that i never got off my chest. i remember when we first met my life turned on each day. but then my feeling started to change you talked about more like it was again still some are fond of you those that didn't like to question our arc and i secretly promised to never be like it said one does not leave a funeral the same as one enters the mind it's consumed with death this one might differ as i speak to you now as there are no other takers. to blame that
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mainstream media has met its maker. so that's all stuff this is just silly. it's just. that. here's what people have been saying about rejecting the night with you i suspect it's full on also feel that the only show i go out of my way to launch really wanted was the really packs upon our leadership is the john oliver of our three
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americas good to say we are apparently better than nothing is better. see people you've never heard of low down the night. rose of the world bank so very. seriously send us an e-mail. the u.s. secretary of state says president trump will decertify the iranian nuclear deal but not leave it out despite the global nuclear watchdog as well as u.s. and european officials saying turns wrong has been keeping its side of the bargain . u.s. media claim that the global gaming sensation poky long has become a tool for russian hackers. and the un says as trying to afghanistan have led to an increase in civilian casualties compared with last year .

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